The sale of All3Media is in doubt, with the favourite cooling off buying the makers of The Only Way Is Essex

The auction of All3Media, the TV firm behind The Only Way is Essex and
Hollyoaks, is in doubt after Sony, the favourite, indicated it was losing
interest.

All3Media was put up for sale in April. A decent price is important for the
company’s private equity owner, Permira, which will ask investors to put
money into a new investment fund this autumn.

Sony has money to spend after it realised its stake in the TV producer Shine,
which was bought by News Corporation, owner of The Sunday Times. It is
thought not to have formally pulled out of the process but to be reluctant
to proceed if the price goes higher.

Bids are understood to have come in at between £600m and £700m, some way short
of the £750m that had been mooted. It leaves Apollo Management, which owns
the American Idol producer CKX and is also examining a bid for music group
EMI, as the most likely buyer. However, advisers concede it is not a
seller’s market.

An alternative plan, to inject All3Media into ITV with Permira taking a stake
in the enlarged business, is not thought to have found favour with Adam
Crozier, the broadcaster’s chief executive. All3Media is more than 40%-owned
by its management, led by former ITV boss Steve Morrison, who are keen to
roll over their investment.

Sources said there was still a pool of bidders, with executives being flown to
view All3Media bases round the world.

The group is expected to have made an underlying profit of £64m in the year to
August, and is forecasting a 10% increase next year.